The construction industry added 16,000 jobs in March and 246,000 jobs in the past 12 months, according to an analysis of new government data by the Associated General Contractors of America. “Construction employment rebounded in March, indicating that the dip in February was probably related to extreme weather conditions and not the beginning of a […]
The Dodge Momentum Index rose a slim 0.5 percent in March to 145.5. The Momentum Index, issued by Dodge Data & Analytics, is a monthly measure of the initial report for nonresidential building projects in planning, which have been shown to lead construction spending for nonresidential buildings by a full year. Institutional planning fell 3.0 […]
Heating and cooling equipment shipments totaled 1.49 million units in February, up 0.7 percent compared to one year ago, according to data recently released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Excluding the 5.1 percent slip last September, total monthly equipment shipments on a year-over-year basis have increased every month since November 2016. Residential […]
I’m going to give you more than advertisements in tonight’s Final Thoughts. I have been struggling with our SMU Price Momentum Indicator. It appears that each product has a life of its own, and I need to do a deeper analysis of each to determine where my Momentum Indicator needs to be. Right now, I […]
The majority of respondents to Steel Market Update’s questionnaire this week reported mills willing to talk price in every product category, even plate, which may say something about the current state of steel demand. About 76 percent of respondents said the mills are open to price negotiations on hot rolled, up 20 points from the […]
Lead times for spot orders of hot rolled, cold rolled and galvanized steels are now about a week longer than they were in January, but have seen only small upticks in the past month. Lead times for plate and Galvalume have actually shortened slightly. Hot rolled lead times now average a bit more than four […]
President Trump gave the Mexican government one year for them to stop the migration of immigrants, most from Central and South American countries, as well as illegal drug smuggling into the United States. The stick he is waving is not closing the border (which would decimate the U.S. economy), but instead threatening tariffs on automobiles […]
Major U.S. automakers reported weaker sales in March, in line with analysts’ forecasts. Cox Automotive expects auto sales volume for the month to drop 7 percent year-over-year to 1.547 million. The seasonally adjusted annual rate is forecast at 16.5 million vehicles. “The year has started relatively soft for new-vehicle sales,” notes Jonathan Smoke, chief economist […]
Construction spending increased 1.0 percent in February following a 2.5 percent gain in January, reported the Associated General Contractors of America in its latest analysis of government data. Construction spending totaled $1.32 trillion in February, up 1.0 percent from the January rate and a gain of 1.1 percent compared to February 2018. Public construction accounted […]
We stuck in a couple of Premium level articles in tonight’s issue to give our Executive members an opportunity to review the level of detail we put into Premium products. With our new pricing we have exceptional membership levels on both Premium and Executive products, especially for those of you who would like to share […]
Sales of new single-family homes were at an 11-month high in February. Sales rose to a seasonally adjusted annual rate of 667,000, a 4.9 percent gain from January and a 0.6 percent increase from February 2018, the Commerce Department said on Friday. “This is a welcome bounce back for new home sales…and adds another hill […]
I am going to be in the office for the next couple of weeks. My next trip is not until the 15th of April. We have quite a bit going on with a new flat rolled and plate steel market trends analysis (survey) starting first thing Monday morning. If you receive an invitation, please take […]
I want to make sure that all of you thinking of attending this year’s SMU Steel Summit Conference are aware of some of changes, so you can plan your schedules accordingly. First, the CME Group will be hosting a Price Risk Management Workshop in the Atlanta Airport Marriott Gateway Hotel (next to GICC) from 10:30 […]
General Motors will build its new electric Chevy at its Orion Township plant in Michigan. The auto manufacturer announced it will invest $300 million at the facility as part of its $1.8 billion investment strategy for the U.S. The electric vehicle, originally slated for overseas assembly, will add 400 jobs at the plant. CEO Mary […]
Housing starts took a tumble in February, dropping 8.7 percent below January’s level for a seasonally adjusted annual rate of 1,162,000. Single-family starts plummeted 17.0 percent, although apartment-style housing of five units or more jumped 23.5 percent. Starts declined in all regions except the Midwest, which saw a gain of 26.8 percent for the month. […]
After traveling for the past eight days and arriving back in Florida at 1 a.m. this morning, I am back in my office. I expect to be in the office for the next two weeks before traveling to Orlando to speak to the Air Distribution Institute. Registrations for the 2019 SMU Steel Summit Conference have […]
Steel Market Update’s Steel Buyers Sentiment Index has registered little change so far this year, even as steel prices have seen a small uptrend. The goal of the index is to measure how buyers and sellers of steel feel about their company’s ability to be successful today (Current Index), as well as three to six […]
Thirty-seven states added construction jobs between February 2018 and February 2019, although construction employment increased in only 16 states between January and February, according to an analysis by the Associated General Contractors of America of Labor Department data. “Although job growth remains widespread on a year-over-year basis, the combination of exceptionally bad weather and record […]
Existing home sales jumped 11.8 percent in February for its largest month-over-month gain since December 2015. The seasonally adjusted annual rate rose to 5.51 million, strongly rebounding from January, said the National Association of Realtors. Sales compared to a year ago were down 1.8 percent. “A powerful combination of lower mortgage rates, more inventory, rising […]
There were a number of comments connected to the article we did on Thursday regarding Timna Tanners “Steelmageddon” opinion. Most of the comments in last week’s survey were against the Steelmageddon thought process which calls for the collapse of steel prices in a couple of years when the new capacity comes online. As you can […]
Mills are still willing to negotiate on price, especially on hot rolled, even as they work to collect the two $40 per ton price increases they announced in January and February. In every product category except plate, the majority of respondents to Steel Market Update’s questionnaire this week reported mills willing to talk price. Most […]
Lead times for spot orders of flat rolled steel saw little additional change in the past two weeks after moving out by a few days following the mill price increase announcements in January and February. Hot rolled lead times now average a bit more than four weeks, cold rolled more than six weeks, plate six […]
Toyota hopes to prevent becoming a victim of auto tariffs by investing in its U.S. operations. The company has increased its 2017 pledge to invest $10 billion by 2021 to a new target of $13 billion. Toyota’s announcement last week includes $750 million for capacity increases and building expansions at Toyota’s plants in Huntsville, Ala., […]
Due to the government shutdown, this our first construction update since the October data was released on Dec. 3. The Construction Put in Place (CPIP) expenditures data for November through January was released on March 13. The results for total construction were disappointing with slowing growth in November, December and January. This was not a […]
This report examines the import share of sheet, plate, long and tubular products and 16 subcategories through December. Table 1 shows total supply to the market in three months through December and in 12 months through December for the four product groups and the 16 subcategories. Supply to the market is the total of domestic […]
I am traveling this week. I have been in Monterrey, Mexico, where I visited the Roberto Rocca Industrial School in Pesqueria in the state of Nuevo Leon (just outside of Monterrey). I also visited the Ternium Industrial Center, which is already a major rolling facility and where Ternium is expanding capacities dramatically so the mill […]
Total heating and cooling equipment shipments in January rose 6.6 percent compared to one year ago, according to data recently released by the Air-Conditioning, Heating, and Refrigeration Institute (AHRI). Excluding the 5.1 percent slip last September, total monthly equipment shipments on a year-over-year basis have increased every month since November 2016. Residential and commercial storage […]
On my way back to the USA following a good meeting with the folks at Ternium in Mexico. More to follow later. We think the information Steel Market Update provides is important and we want to make it readily available to more individuals within each subscribing company. We want to encourage employees in sales, purchasing, […]
United Autoworkers are gearing up for contract negotiations this summer and are ready for a fight. At the UAW bargaining convention in Detroit last week, the UAW announced the negotiating teams for FCA and General Motors. Bargaining will be led by UAW President Gary Jones along with department directors Cindy Estrada at FCA and Terry […]
I will be traveling all week as I head to Monterrey, Mexico, to tour the Ternium training facilities and steel mill. I will also be meeting with Cesar Jimenez, the CEO for Ternium Mexico, to discuss the new capacity they have coming onstream over the next 12-24 months. We are also working with Ternium to […]